A Look at Wants and Needs

Chapter 1pp. 4-17

Mr. Manning

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Learning ObjectivesLearning Objectives

• Explain Explain the difference between public and private wants.

• DescribeDescribe how resources can limit the number of wants people and businesses can satisfy

• List List the steps in the decision making process.

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WANTSWANTS

• Wants are the things you “wish” you could have. Each person has wants

• A group of people may also share the same wants. Although these wants are shared, they are considered private wants

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PRIVATE WANTSPRIVATE WANTS

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Introduction to Business, A Look at Wants and Needs

• Some wants are widely shared by many people

• These wants are no longer considered private but become public wants. For the most part local, state, and federal governments satisfy public wants

PUBLIC WANTSPUBLIC WANTS

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Introduction to Business, A Look at Wants and Needs

• Examples of public wants are: education, highways, and drinking water

PUBLIC WANTSPUBLIC WANTS

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Introduction to Business, A Look at Wants and Needs

SATISFYING WANTS AND NEEDSSATISFYING WANTS AND NEEDS

• Needs - “Necessary wants;” food, shelter, clothing • Goods can be physically weighed or measured• Goods satisfy your wants and needs for material things

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Introduction to Business, A Look at Wants and Needs

• Services are tasks that people or machines perform, things you can’t see or touch.• Examples: auto tune-ups, tax accountant, haircut

SATISFYING WANTS AND NEEDSSATISFYING WANTS AND NEEDS

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• What is another name for necessary wants?

• Needs

• Who or what satisfies our public wants?

• Local, state, and federal government

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UNLIMITED WANTS, UNLIMITED WANTS, LIMITED RESOURCESLIMITED RESOURCES

• Most people have unlimited wants for goods and services

• The more money you make, the more goods or services you want.

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• A resource is anything that people can use to make or obtain what they need or want

• Examples of resources include fuel, timber, labor, and money

UNLIMITED WANTS, UNLIMITED WANTS, LIMITED RESOURCESLIMITED RESOURCES

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• The problem of unlimited wants and limited resources affects individuals, companies, and nations• Resources limit what you buy• Businesses and government affected

UNLIMITED WANTS, UNLIMITED WANTS, LIMITED RESOURCESLIMITED RESOURCES

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The decision-making process has five essential steps:

1. Identify the situation2. Identify possible courses of

action3. Determine the pros and cons4. Make the best decision5. Evaluate your decision

DECIDING ON YOUR RESOURCES

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• HOMEWORK

– Rd. Pgs. 12-15

– Review questions on Page 15 (1-3)

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Learning ObjectivesLearning Objectives

• ExplainExplain how profit and competition motivates business.

• DescribeDescribe how business impacts you and how you impact business.

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WHAT IS BUSINESS? WHAT IS BUSINESS?

Business is any activity that seeks profit by providing goods or services to others

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Businesses provide you with: • Necessities (things you need)• The opportunity to become wealthy

WHAT IS BUSINESS? WHAT IS BUSINESS?

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WHAT BUSINESS DOES WHAT BUSINESS DOES 1. Identify opportunities for

products or services2. Evaluate the demand for

products or services3. Obtain start-up money4. Manage production of G&S5. Market goods & services6. Keep records

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BUSINESS’S MOTIVATIONSBUSINESS’S MOTIVATIONS

• Profit - amount of money left over after a business has paid for the cost of producing its goods and services

• Profit is the motivation for taking the risk to start a business, in it to MAKE $

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• A business is profitable when sales are high and costs are kept low

BUSINESS’S MOTIVATIONSBUSINESS’S MOTIVATIONS

PROFITABLE BUSINESS =

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• Competition - the contest between businesses to win customers• Companies thrive on competition• Companies have to be willing to change/adapt with the constant changing of the consumers’ needs and wants

BUSINESS’S MOTIVATIONSBUSINESS’S MOTIVATIONS

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BUSINESS AND YOU BUSINESS AND YOU • Businesses make many decisions that impact you

• However, you also affect business

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YOU AS A CONSUMERYOU AS A CONSUMER• A consumer is a person who selects, purchases, uses, or disposes of goods or services• Businesses affect you when they discontinue products – how does this affect you?

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• When a company is slow to respond to customers’ complaints and doesn’t communicate very well (BAD SERVICE), customers usually find another company’s product to buy

YOU AS A CONSUMERYOU AS A CONSUMER

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• Consumers and Business interact to “change and innovate” the way we do things • Examples:

YOU AS A CONSUMERYOU AS A CONSUMER

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YOU AS A WAGE EARNERYOU AS A WAGE EARNER

• Businesses hire people to work• When you’re an employee, your quality of work, decision-making skills, and input to problems help a business flourish and reflects on how the company looks

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HOW THIS WILL HELP YOUHOW THIS WILL HELP YOU

• When you become a business owner, manager, or employee, you’ll need business knowledge to make informed decisions • The more education you have, the better your income,to satisfy your wants and needs.

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• HOMEWORK

– Chapter 1 Review (Page 16)

– Questions 2-7

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• What do you like?• Where do you want to work?• Corporate or Entrepreneurship?• Outside vs. Inside?• Your wants and needs…

THINGS TO THINK ABOUT…THINGS TO THINK ABOUT…

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How are colleges going to meet the increased demand for continuing education courses?

continued

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Why is diversity an important stimulus to the workforce?

End of Chapter 1A Look at Wants and Needs